A forecaster for the government predicted that the economy would shrink next year, as the UK is already in a recession.
According to the Office for Budget Responsibility, higher energy prices caused the downturn.
The country will not grow again until at least 2024, according to it.
As the chancellor lays out his plans, it comes.
Families, businesses, teachers, nurses and many other people are worried about the future, Jeremy Hunt said in his Autumn Statement to Parliament.
He said the government would take difficult decisions to tackle inflation and promised his plan would lead to a downturn.
The soaring cost of living is squeezing household budgets, with energy, food and fuel bills all much higher than they were a year ago.
Many are facing hardship and the economy is starting to drag on.
The economy is expected to grow by 4% this year according to the OBR.
It said it would shrink by 1.4% next year, before rising by 1.3%, 2.6%, and 4.7% in the following three years.
A recession is when a country's economy shrinks for two consecutive quarters.
Companies make less money and pay less during a recession. The government doesn't get as much tax to use on public services.
The UK is now in a recession according to the OBR. Higher energy prices explain most of the downward revision in cumulative growth.
He said that the recession is less severe because of the plans. As a result of our decisions today, the unemployment rate is lower.
Mr Hunt hopes his Autumn Statement will help restore credibility in the eyes of international investors
The September mini-Budget promised major tax cuts without explaining how they would be funded.
The Bank of England stepped in to calm the markets after the pound fell to a record low.
Part of the problem was that Mr Kwarteng didn't publish an OBR assessment of his plans.
The cost of government borrowing has fallen and the pound has strengthened, according to Mr Hunt.
Lower interest rates generated by the government's actions are already benefiting the economy.
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